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South African retail giant Shoprite Holdings, has confirmed its plans to exit Ghana and Malawi, signalling yet another step back in its broader African expansion strategy.
According to a Reuters report on Tuesday, Shoprite revealed that its subsidiary, Shoprite Malawi, entered into an agreement on 6 June to sell its five trading stores. However, the deal is still awaiting regulatory clearance, particularly from Malawi’s Competition and Fair Trading Commission and the Reserve Bank of Malawi.
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In Ghana, Shoprite also disclosed that it had received a binding offer in June for the purchase of its seven stores and a distribution warehouse. The company described the sale as “highly probable”, reinforcing expectations of a complete pullout from what was once seen as a high-potential market in West Africa.
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Shoprite’s move has revealed the persistent challenges faced by global retailers across several African economies, where currency volatility and shifting economic policies can quickly erode margins. Shoprite has struggled with currency volatility, surging inflation, restrictive import policies, and leases pegged to the US dollar in both Ghana and Malawi. These macroeconomic hurdles have taken a toll on profitability.
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Shoprite has now reclassified both operations as discontinued businesses, in line with IFRS 5 accounting standards.
The announcement sparked immediate reaction on the markets. As of 07:53 GMT, Shoprite’s shares had declined by 2.6% on the Johannesburg Stock Exchange (JSE), reflecting growing investor concern over the group’s shrinking international footprint.
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With the exits from Ghana and Malawi, Shoprite has now withdrawn from seven African countries outside of South Africa, including Nigeria, Kenya, the Democratic Republic of Congo, Uganda, and Madagascar, over the past four years.
Over the last year, it has opened hundreds of new stores, significantly expanded its Sixty60 e-commerce delivery service, and ventured into new categories like healthcare, pet supplies, and outdoor goods.